UK unemployment rises by the least in a year

UK unemployment rose by the least in a year, fresh figures showed today, as
the impact of the recession eased.

The number of people searching for work in the three months through August climbed by 88,000, the smallest rise since the three months to the end of July last year.

Separately, figures showed that jobless benefits rose by 20,800 in September, less than the 24,500 economists had forecast.

Experts estimate that unemployment will continue to climb in coming months even if the economy may have technically emerged from recession last quarter. Both Prime Minister Gordon Brown and David Cameron, the Conservative party leader, have made returning Britons to work a key part of their promises.

Leading business figures, including Tesco chief executive Sir Terry Leahy, have warned that rising unemployment remains one of the biggest threats to a robust recovery in the UK economy.

Economists were quick to play down the prospect that unemployment has peaked. Despite signs that the economy may now be out of recession, banks are still struggling to lend.